Freeland Warns Trump Team to Avoid Proposed Border Tariff

This article was last updated on April 16, 2022

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Canada’s Foreign Affairs Minister, Chrystia Freeland, has confirmed to have warned the Trump administration in Washington that Ottawa would retaliate in case the new U.S. President imposes tariffs at the border and ignites a trade war with Canada. Ms. Freeland met with Donald Trump’s Secretary of State, Rex Tillerson, in Washington on Wednesday.

Speaking about her meeting, Freeland mentioned that she delivered a message that Ottawa has no appetite for tariff walls and is not afraid to fight back. She stressed that “I did make clear that we would be strongly opposed to any imposition of new tariffs between Canada and the United States, that we felt tariffs on exports would be mutually harmful to both Canada and the United States and that, if such an idea were ever to come into being, Canada would respond appropriately.” Despite Ms. Freeland’s statement, a senior Canadian official assured that “no one wants to start a trade war.”

Meanwhile, the Globe has quoted a Canadian government source to claim that Ms. Freeland also shared several other concerns to U.S. officials, including a border adjustment tax proposed by members of Congress, Mr. Trump’s executive order favouring U.S.-made steel and his push for biometric screening at the border.  The idea of border adjustment tax was proposed by U.S. House Speaker Paul Ryan as an alternative to new tariff walls, which would impose a higher tax burden on U.S. companies that import goods from other countries compared with firms that buy all of their products from within the United States.

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